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Post by charliebrown on Nov 9, 2018 3:07:42 GMT
Hi CB. Thanks for adding to this thread.
We need to keep this badly managed loan in the public domain as Lendy are clearly playing lip service to loyal lenders and have shown no guts dealing with this highly skilful defaulting borrower.
He has set the precedent that once an excuse has been accepted all that is needed is to last for 12 months with no payments of any money then the same excuses can be used again (in fact 2 excuses in this case i.e. JV that failed to appear and delay in the plans) which the feeble management at Lendy will just accept.
It may not be the biggest loan that is horribly late but it is the clearest example of the way a clever borrower can easily out manoeuvre Lendy (and their legal team) and how Lendy have lost control of a fairly simple development project.
This loan has been horribly mismanaged, but so have many/most/all LY loans. LY’s has lost control. Investors have stopped investing, borrowers have stopped repaying, the press are circling, lawyers are circling, staff are leaving and the LY money must be running out. I really don’t know what the answer is. Complaining on this board with other aggrieved people at least makes me feel I’m not alone, but I really wish there was something positive and constructive we could collectively do to help ourselves somewhat rather than just sit silently and let LY continue to misrepresent us.
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sl75
Posts: 2,092 
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Post by sl75 on Nov 9, 2018 9:27:51 GMT
LY’s has lost control. Investors have stopped investing, borrowers have stopped repaying, the press are circling, lawyers are circling, staff are leaving and the LY money must be running out. I really don’t know what the answer is. Complaining on this board with other aggrieved people at least makes me feel I’m not alone, but I really wish there was something positive and constructive we could collectively do to help ourselves somewhat rather than just sit silently and let LY continue to misrepresent us. I somewhat disagree with the highlighted comment. By my count, 27 loans have been fully repaid this year totalling about £29M, of which 8 (totalling over £9M) were within the last 3 months.
In the same time there've been far fewer new loans to invest in, making it impossible to maintain a properly diversified portfolio on an ongoing basis, as Lendy desperately struggle to try to push whatever limited funds are still being re-invested into the same few enormous loans to which "everyone" already has adequate exposure.
Unfortunately, loans that get repaid have a couple of comments on the forums and are quickly forgotten, whereas loans that don't repay have endless discussion from impatient investors who seem to think recoveries should be done and dusted within a few weeks or months, when the reality is that recovery activity usually takes months or years, and a significant degree of patience is required to get the best possible recovery (other platforms are still recovering money for me several years after the relevant loans became overdue).
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Post by picanto on Nov 9, 2018 10:55:27 GMT
LY’s has lost control. Investors have stopped investing, borrowers have stopped repaying, the press are circling, lawyers are circling, staff are leaving and the LY money must be running out. I really don’t know what the answer is. Complaining on this board with other aggrieved people at least makes me feel I’m not alone, but I really wish there was something positive and constructive we could collectively do to help ourselves somewhat rather than just sit silently and let LY continue to misrepresent us. I somewhat disagree with the highlighted comment. By my count, 27 loans have been fully repaid this year totalling about £29M, of which 8 (totalling over £9M) were within the last 3 months.
In the same time there've been far fewer new loans to invest in, making it impossible to maintain a properly diversified portfolio on an ongoing basis, as Lendy desperately struggle to try to push whatever limited funds are still being re-invested into the same few enormous loans to which "everyone" already has adequate exposure.
Unfortunately, loans that get repaid have a couple of comments on the forums and are quickly forgotten, whereas loans that don't repay have endless discussion from impatient investors who seem to think recoveries should be done and dusted within a few weeks or months, when the reality is that recovery activity usually takes months or years, and a significant degree of patience is required to get the best possible recovery (other platforms are still recovering money for me several years after the relevant loans became overdue). You are right in the sense that the bad loans that are dragging on get much more attention on the forum than the ones that have been repaid and loan recoveries take a long time, but the rate of repayments has definitely slowed down since mid-July. I am willing to give Lendy a chance as I would reinvest some of my funds into these pipeline tranches IF they could get repayments in and recover some capital of the bad loans. And I know there are many investors that say they want to get out of Lendy ASAP because investor confidence is so low at the moment, but I think in reality confidence would start coming back and many of these investors would change their minds and reinvest some of their funds if Lendy could recover some of the overwhelming bad debt that currently exists on their loan book. What damages Lendy the most in my opinion (and this particular loan is a prime example) is when they say in their recent updates that the loan is progressing well, repayments are expected within the next few weeks, however, the loan drags on and on and then all of a sudden the loan gets suspended and investors funds are stuck with no chance of being recovered in the near future. That's what has happened to a significant number of my loans which according to the IMS reports and Lendy's e-mails these loans seemed as safe as they can possible be in P2P lending...
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Post by p2plender on Nov 9, 2018 12:05:48 GMT
You are right in the sense that the bad loans that are dragging on get much more attention on the forum than the ones that have been repaid and loan recoveries take a long time, but the rate of repayments has definitely slowed down since mid-July. I am willing to give Lendy a chance as I would reinvest some of my funds into these pipeline tranches IF they could get repayments in and recover some capital of the bad loans. And I know there are many investors that say they want to get out of Lendy ASAP because investor confidence is so low at the moment, but I think in reality confidence would start coming back and many of these investors would change their minds and reinvest some of their funds if Lendy could recover some of the overwhelming bad debt that currently exists on their loan book. What damages Lendy the most in my opinion (and this particular loan is a prime example) is when they say in their recent updates that the loan is progressing well, repayments are expected within the next few weeks, however, the loan drags on and on and then all of a sudden the loan gets suspended and investors funds are stuck with no chance of being recovered in the near future. That's what has happened to a significant number of my loans which according to the IMS reports and Lendy's e-mails these loans seemed as safe as they can possible be in P2P lending...
Really, really???
The only cash I would throw at this shower is my worst enemies.. The whole company appears rotten to the core. Imagine if they weren't working in benign times??!!
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Post by picanto on Nov 9, 2018 12:25:56 GMT
Really, really??? The only cash I would throw at this shower is my worst enemies.. The whole company appears rotten to the core. Imagine if they weren't working in benign times??!! If Lendy manage to recover a large amount of capital and interest in the defaulted loans then yes, I think that investor confidence would come back and people would reinvest their funds into the platform. Obviously that is a very big "if" and not something I'm highly expecting to happen but 12%p.a. interest rate with property based secured loans still remains a very attractive investment for many investors.
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Post by charliebrown on Nov 9, 2018 15:48:32 GMT
Really, really??? The only cash I would throw at this shower is my worst enemies.. The whole company appears rotten to the core. Imagine if they weren't working in benign times??!! If Lendy manage to recover a large amount of capital and interest in the defaulted loans then yes, I think that investor confidence would come back and people would reinvest their funds into the platform. Obviously that is a very big "if" and not something I'm highly expecting to happen but 12%p.a. interest rate with property based secured loans still remains a very attractive investment for many investors. If I am a typical LY investor (not sure whether I am) then the typical LY investor will be looking down the barrel of very significant capital losses which will take years. There is absolutely nothing attractive about this. LY really do need to throw everything they’ve got at resolving defaults, if they are successful then some confidence may return. However, personally I believe their brand is severely damaged and they neither have the skill nor the fight to resolve this mess. I hope I am wrong.
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sussexlender
Member of DD Central
Cheat seeking missile
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Post by sussexlender on Nov 15, 2018 9:24:52 GMT
A quick look at the planning portal reveals nothing new is being discussed or considered.
If Lendy are to be believed they have an assignment over the approved drawings so one would suspect they would have to be notified of any changes.
I foresee a new excuse for 2019 " unfortunately, the minor changes to the plans have been delayed due to the long Christmas holidays and the planning department is closed until Easter".
So what are these totally unimportant "minor changes" that have stopped the commencement of the JV progress and / or the failure to commence even one bit of work on the site? Do Lendy even know the identity of the JV party this time around - is it the same failed partner of 12 months ago?
Why should current investors have to continue to wait for alterations to the plans to be approved? The unidentified "Groundhog Day" JV clearly does not have any great confidence in the borrower if they are insisting on waiting for minor change approvals before handing over their cash.
The JV should be told by Lendy to take this project over now (and then they can do whatever they want with it or the borrower) or simply default it and sell the land to someone who will improve this part of St. Leonards-on-Sea.
Could it be that Lendy are just accepting repeat excuses from this so called "developer" because they want cling on to the no losses fiction?
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Post by charliebrown on Nov 15, 2018 11:44:05 GMT
Something needs to be done, this charade has gone on long enough. Issue a final demand for repayment and appoint Administrators. Auction off the site and return some capital to disgruntled lenders. If LY still want to claim that there’s no losses then simply park the losses under claims underway and kick that can down the road forevermore. Wake up Lendy, your investors have had enough of the perpetual procrastination.
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sussexlender
Member of DD Central
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Post by sussexlender on Nov 26, 2018 20:36:40 GMT
After 534 days in default this must now qualify as a failure even for the brilliant minds currently employed at Lendy.
We were told on 1st November that the all knowing Lendy loans machine was in constant contact with this now highly suspect borrower and that changes to the approved plans would be "submitted and approved within 3 - 4 weeks". Time runs out on 28th.
No changes have appeared on the Hastings planning website.
This borrower is clearly not telling Lendy the true position but Lendy simply continue to accept any old excuse, or in this case, any repeated excuse.
I suggested many months ago (see above 22nd and 25th September) that this loan should be terminated and that action is required to seize and sell this now seriously devalued plot of waste land. Nothing has been done.
Sub prime lending now seems a very good bet compared with many of these Lendy loans.
Some might be asking exactly what has this borrower got over Lendy that make them so fearful of defaulting this obvious failure by an "experienced developer" in order to get some cash back for investors?
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moist
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Post by moist on Nov 27, 2018 8:11:41 GMT
After 534 days in default this must now qualify as a failure even for the brilliant minds currently employed at Lendy.
We were told on 1st November that the all knowing Lendy loans machine was in constant contact with this now highly suspect borrower and that changes to the approved plans would be "submitted and approved within 3 - 4 weeks". Time runs out on 28th.
No changes have appeared on the Hastings planning website.
This borrower is clearly not telling Lendy the true position but Lendy simply continue to accept any old excuse, or in this case, any repeated excuse.
I suggested many months ago (see above 22nd and 25th September) that this loan should be terminated and that action is required to seize and sell this now seriously devalued plot of waste land. Nothing has been done.
Sub prime lending now seems a very good bet compared with many of these Lendy loans.
Some might be asking exactly what has this borrower got over Lendy that make them so fearful of defaulting this obvious failure by an "experienced developer" in order to get some cash back for investors? What does the lender have?....a valueless site. If there is any chance of refinance, Lendy have to wait, unless you want a 10% return.
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invester
P2P Blogger
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Post by invester on Nov 27, 2018 9:58:32 GMT
That's it, isn't it.
The problem with enforcing this is that it adds another list to Lendy failures, and the magnitude of this might be massive. I'd imagine it'd be worse than the IOW or even Exeter debacles.
Additionally I would think they have their hands full with the rest of the claims. Why take on more work when you don't have to? Not as if investor sentiment can get much worse.
The only thing that they can really do is HODL and pray that something happens.
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GeorgeT
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Post by GeorgeT on Nov 27, 2018 14:45:49 GMT
The asset the loan is secured against has a value much less than the loan. It looks to have been massively overvalued in the first place and now I think it would be hard to sell at all. My guess is that LY know that and that a repossession would be an embarrassment if they ended up with a capital recovery rate of say 10% after all the associated costs. My guess is kicking the can down the road endlessly causes them less reputational damage.
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Post by picanto on Nov 27, 2018 15:10:03 GMT
The asset the loan is secured against has a value much less than the loan. It looks to have been massively overvalued in the first place and now I think it would be hard to sell at all. My guess is that LY know that and that a repossession would be an embarrassment if they ended up with a capital recovery rate of say 10% after all the associated costs. My guess is kicking the can down the road endlessly causes them less reputational damage. And yet it was only a few months ago when Lendy sent e-mails to us expecting full capital repayment with interest and bonus interest, along with DFL005...
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sussexlender
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Post by sussexlender on Nov 27, 2018 16:11:33 GMT
It may seem to many investors that no one from Lendy has actually been to look at this waste site (or probably ever met up with the Borrower). Lendy simply regurgitate what they are told by the borrower / solicitor.
As was the case over 12 months ago, no attempt has been made to identify the JV finance provider.
Whilst this is not the biggest loan in clear default and / or headache for Lendy, this loan is the clearest example of total incompetence to control a project matched with a skilful Borrower who has used up the standard excuses and has simply been permitted to repeat the original excuses in the hope that Lendy will not take any action.
Unfortunately for both Lendy and this Borrower many investors have good memories and this fantastically informative independent forum to assist us.
Continuing to have any faith in the "recovery" team at Lendy - who are simply kicking the can down the road - will only mean that investors will have to wait even longer before they finally do start legal proceedings.
Lendy have stopped sending out their Weekly Monthly Bu****it as it was too easy for all investors to see what was going wrong with so many loans. Investors now need to search for information and no doubt Lendy hope they can not be bothered to do so.
It is vital that we keep the pressure on Lendy and not let them stall anymore on this shockingly mismanaged loan.
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Post by picanto on Nov 27, 2018 16:43:03 GMT
Lendy have stopped sending out their Weekly Monthly Bu****it as it was too easy for all investors to see what was going wrong with so many loans. Investors now need to search for information and no doubt Lendy hope they can not be bothered to do so. It is vital that we keep the pressure on Lendy and not let them stall anymore on this shockingly managed loan. As far as I'm aware, Lendy are still doing the monthly loan updates, it's the investor round-up they are no longer doing. Correct me if I'm wrong though, I rely on my father to provide me with these details because I only receive some of Lendy's e-mails due to a system error.
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